Iraqi oil project taps Chinese expertise

Iraq has experienced a mutually beneficial oil and gas partnership with China, and anticipates a fresh beginning following China National Petroleum Corporation, or CNPC, taking over from ExxonMobil as the lead contractor for the West Qurna 1 oilfield, officials have said.

On New Year's Day, nearly 200 guests attended a groundbreaking ceremony of the new operation headquarters of the project in Basra, Iraq's second-largest city and most important port hub.

Hayan Abdul-Ghani, Iraq's deputy prime minister for energy affairs and oil minister, said via video that the field's production has now reached 550,000 barrels a day. He lauded the Chinese company for providing sufficient job opportunities and services to local communities.

West Qurna 1, located about 50 kilometers northwest of Basra, is a major oilfield with the largest production potential in Iraq. It has an annual crude oil output of more than 25 million metric tons with recoverable reserves of more than 22 billion barrels.

Leading operations of West Qurna 1 reflects the shared vision of Chinese and Iraqi leaders, deepening economic and trade cooperation, said Chen Mingzhuo, general manager of the project.

"It also serves as our commitment to bolstering Iraq's economy and playing a part in its journey toward prosperity," he said.

Iraq has long relied on oil exports for 90 percent of its revenue and the new operation center is essential for the field to further increase production.

Spanning 800,000 square meters, the upcoming complex will entail a total construction area of about 50,000 square meters. It is slated for completion in two phases, with the first phase scheduled for 2027 and the second for 2028.

The initial phase can house 540 employees with two production command center buildings, a canteen, a multipurpose building, a clinic, a maintenance workshop and other support facilities.

The CNPC successfully completed the handover across seven fields within six months, with the comprehensive handover carried out, the group said in a news release.

By last year, the average yearly production had surged to 541,000 barrels a day. Production has steadied at 550,000 barrels a day, hitting a record peak of 568,000 barrels on July 28.

The achievements were made with the work of 2,569 staff members of West Qurna 1, coming from more than 10 countries, including China, Japan and Indonesia, with 76 Chinese employees.

Close teamwork

"The Chinese collaborate closely with both international and local employees. We are akin to three differently sized cogwheels, where only through close cooperation can we ensure efficient operation," said Guan Lei from the maintenance department. He leads a team of nearly 300 workers and he is the sole Chinese within the team.

In the new year, the successive commissioning of four key projects will contribute to the increase in production capacity by 200,000 barrels a day.

Cai Kaiping, the project's subsurface manager, said, "We expect production capacity to reach 800,000 barrels per day by 2028 and 1 million barrels per day by 2030, and in the next phase, production capacity will reach 1.2 million barrels per day by 2035."

"We value the friendship formed in our work. We once took our Iraqi colleagues to visit the oilfields in Daqing, China's largest onshore oilfield, and the garden-like environment left a profound impression on them, strengthening their confidence in cooperating with us," he said.

Green development has also been a major feature of West Qurna 1 since the transition began.

On Dec 17, the DS6 degassing station of West Qurna 1 successfully eliminated most of the "black smoke" from burning associated gas. It was seen by many locals as one of the key green achievements after the CNPC took over the oilfield.

Hasan Hanoon, 35, an engineer in the operation department, said the smoke used to seriously affect local residents in the area. The Iraqi, who is married with three children, said the job helps his family to have a decent life in Iraq.

"Since joining the Chinese enterprise, I have felt the changes in the oilfield, and admired China's speed, strength and spirit," he said, adding that he has also learned more about the China-proposed Belt and Road Initiative.

"Iraq-China cooperation has not only improved our lives. More importantly, it has opened up more possibilities for our future development."